The stabilized polymeric dispersions prepared according to this invention are described in a general way in U.S. Pat. No. 4,746,714 to Spinelli, Scopazzi and Antonelli.
While those dispersions function very well for their intended purpose, the method described for their preparation provides no convenient way for incorporating living functional groups, especially hydroxyl groups, on the chains of the stabilizer polymer molecules. These functional groups confer certain advantages when the polymer system is to be cross-linked with melamines or isocyanates.
It has now been found that such groups can be easily incorporated on the stabilizer polymer molecules, in any number, if one uses a cobalt catalytic chain transfer agent in the polymer's preparation.